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FRANCHISE REPORT 2020 What Thumb Memo?

Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

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Page 1: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

FRANCHISE REPORT2020

What Thumb Memo?

Page 2: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

1 What is Teriyaki Madness?

2 Our Story

3 The Food

4 Why Teriyaki Madness?

8 Why Fast Casual?

9 Why Asian Food?

10 Our Customers

11 Raving Fans

12 Why We’re Unique

13 Let’s Talk Money!

14 Available Territories

15 Hear It From Shop Owners

16 A Day in the Life

17 Education Timeline

18 Steps to Open a Shop

19 Future Growth

20 Meet the Management Team

22 Real Estate and Construction

23 Product Quality & Supply Chain

24 Vendor Relationships

25 Operations

26 Marketing

27 Mobile App

28 FAQ & MAD Facts

29 In The News

Page 3: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

What is TERIYAKI MADNESS?IT'S FAST CASUAL. AND FRESH.

1

Teriyaki Madness provides the ultimate Teriyaki Shop experience, serving oversized portions of marinated grilled chicken, beef or tofu and rice or fresh cut veggies wok-tossed in our house-made sauces to create authentic Asian bowls heaping with fresh, healthy ingredients. We combine the traditional values of Seattle’s beloved teriyaki houses to bring a new option to cities and small towns across the country.

We believe both quality and quantity matter. TMAD combines only the highest quality ingredients in our dishes (fresh all-natural chicken, fresh cut veggies, homemade, gluten free sauces) with every order cooked to order in five to eight minutes. Our customers leave full and satisfied (and often with leftovers!).

We take great pride in our menu items. Our dishes are customizable, boasting heaping helpings of meat perfectly marinated in our house-made sauces, fresh vegetables atop a massive serving of sushi-grade rice (white, brown or fried) or yakisoba noodles.

Page 4: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

OUR STORY 2

There’s a reason Teriyaki Shops are found everywhere in Seattle; teriyaki is delicious, healthy and fast. The founder’s love affair with teriyaki started in Seattle as students, then was brought home to Las Vegas in 2003 to see if it would work in a totally different market. It wasn’t long before they had built a community of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing its community of Teriyaki Shop owners and food fanatics nationwide. With success across the country, we took TMAD to the next level. TMAD is spreading fast and now operates in 20+ states and 67+ open shops.

What Makes us Different?

Our Food We believe in food that feeds our souls. Fresh meals,made when and how someone orders, without hesitation.

Our Culture We believe in building a culture made of peopleand NOT bottom lines. We take risks and dream big. We work together, we succeed together, we laugh together. It’s a team from top to bottom.

Our Support We believe if we take you on as a restaurant“newbie” we have the obligation to hold your hand all the way! On the flip side, if we take you in as an established and experienced restaurant owner, we have the obligation to support you in your growth and needs as a multi-unit owner.

Page 5: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

The Food 3WARNING: HIGHLY ADDICTIVE

We serve up quality, fresh, healthy and flavorful Asian food in a high-vibe atmosphere. Through years of mastering marinating, grilling, and wok-ing, we were able to make bowls that are as hearty and delicious as they are healthy. Our food is made when you order. Always fresh, never frozen, marinated and grilled meats, and customizable bowls meant for delicious and healthier eating. We have a collection of sauces, made from scratch with the best ingredients so we can bring a one-of-a-kind teriyaki taste to each bowl at an affordable price. Teriyaki Madness brings teriyaki to a whole new level with a family friendly, neighborhood feel.

Page 6: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

OUR AWARDS. NOT TO BRAG...

TMAD owners, customers, and the franchise industry thinks pretty highly of us! Check out the awards we’ve won over the last few years.

WHY TERIYAKI MADNESS?

The Future 50 - Restaurant Business Teriyaki Madness has made the list for Restaurant Business’ ‘The Future 50’. Ranking in at #23, TMAD is being recognized for the system wide sales and our impressive growth!

Top 100 Movers & Shakers - Fast Casual

Fastest Growing Private Companies in America - Inc, 5000 List

11 Restaurant Franchises on the Cusp of Greatness - QSR

4

Fastest Growing Franchises and Top Emerging Franchises - Franchise GatorTeriyaki Madness has been featured on Franchise Gators Fastest Growing and Top Emerging Franchises Lists for 5 years in a row! TMAD made the ranks for its unique concept combined with a mature business system which paves the way for our expanding success.

Teriyaki Madness was featured in QSR's ‘11 Franchises on the Cusp of Greatness’. TMAD was recognized for our Average Unit Volumes (AUVs), profit potential, and expansion!

Teriyaki Madness was featured in Fast Casual’s ‘Top 100 Movers & Shakers’ list in 2018, 2019, and 2020! TMAD was recognized for the growth plan and technological advancement.

Ranking in at #3723, this achievement puts TMAD in rare company and we are included with top companies such as Microsoft, Timberland, Vizio, Intuit, Chobani, Oracle, and Zappos.com.

Page 7: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

OUR AWARDS. NOT TO BRAG...

WHY TERIYAKI MADNESS? 5

Entrepreneur MagazineFranchise 500

There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur Magazine’s Franchise 500® List for the 4th consecutive year!

#461 Teriyaki Madness

According to CEO, Michael Haith, “The recognition that we have one of the best margins in restaurant franchising has dramatically increased interest from franchise candidates, and the addition of 90 units to our community is not only gratifying, but also lays the groundwork for even more growth in our pursuit of becoming one of the next great international franchise brands with all of the benefits of brand awareness for the franchisees.”

Franchise GatorTop 100 Franchises for 2020

According to Franchise Gator, “The Top 100 has been designed, with the assistance of The Educated Franchisee, to measure the quality of a franchise system over time.”

Top Emerging Franchises

“This list is about helping prospective franchisees,” said Eric Bell, GM, Franchise Gator and VP, Franchise Ventures. “Franchises that are budding and poised for growth is one of many attributes they look for. We’re excited to see Teriyaki Madness on the list.”

Fastest Growing Franchises

Eric Bell said, “If they are going to be making a sizeable financial investment, they want to make sure it is with a franchise that is on the rise. Catching a wave and being a part of a company poised for growth means a lot to many in regards to seeing a return on their investment.”

Page 8: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

OUR FOOD

WHY TERIYAKI MADNESS?

TERIYAKI in Japanese is comprised of two words:“Tare” which refers to the glaze of soy sauce, mirin and other spices, and “Yaki” which refers to the specific method of grilling or broiling. However you spell it, it’s delicious.

Seven SIGNATURE SAUCES are made in-house,and are so popular, many consumers ask how to bring the madness home.

YAKISOBA has been a popular dish in Japan forover 100 years, first being served in food stalls in alleys and markets. Our yakisoba noodles are the best this side of the Pacific!

CHICKEN TERIYAKI is our #1 seller…a favoriteamong our consumers! Spicy chicken is the favorite among our repeat customers. It’s maddeningly delicious!!

Veggies are steamed or stir-fried and are anecessary addition to any meal.

APPETIZERS are a great (and delicious!) up-sellopportunity; potstickers, edamame, crab rangoon’s and eggrolls!

6

sushi-grade Calrose rice is grown in California,and makes the best sticky rice around.

Page 9: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

A majority of our menu is made in-house from scratch, making Teriyaki Madness one of the freshest and most authentic restaurant concepts in the market.

7

This is our entire menu!

WHY Teriyaki Madness?THE SIMPLE MENU

Page 10: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

FAST CASUAL: A GROWING INDUSTRY

WHY Fast Casual?

Source: http://nrn.com/sponsored-content/why-fast-casual-eating-industry-s-lunch

FAST FOOD

FAST CASUAL

CASUAL DINING

FAST DINING

8

The term fast casual describes a restaurant between a quick serve and casual dining experience. It is one of the fastest growing sectors in the restaurant industry.

The segment is rapidly growing because consumers love the concept. It fits the need to eat on the run while offering healthy options. The food is fresher, higher quality and more customizable than fast food. Consumers are saying bye bye to boil-in-the-bag and hello to made to order and are fine paying extra for higher quality, fresher food.

The Proof

The fast casual sector in the restaurant industry shows amazing numbers in the past few years, plus it is expected to continue to perform above average!

Check out the stats from Nation’s Restaurant News on the fast casual restaurant segment:

• Increasing 550% since 1999, ten times the growth in the fastfood industry.

• Exceeding its 5 year compound annual growth rate of 11.7% inone year (2014).

• Climbing 12.8% to $30 billion in annual sales in 2014. (Almostdouble the other restaurant segment’s growth rate.)

• Forecasting growth in the double digits through 2022. (Rest ofrestaurant industry predicted to grow half a percentage point.).

Page 11: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

Asian food has been named the fastest growing food market in the world, growing nearly 500 percent since 1999. This impressive growth can be accredited to the fact that people are now more inclined to try ethnic food due to its bolder flavor, healthy ingredients, and overall nutritional value. By using this new consumer trend to stand out amongst other fast casual restaurants, it has allowed for Asian-inspired food concepts to compete for customer’s loyalty.

Within recent years, consumers are now looking towards a healthier diet and active lifestyle. Due to this change, the fast food industry is taking a hit because they aren’t providing these healthy options. Fast casual restaurants, however, are not only providing more fresh options than a quick service restaurant (QSR) but they are also satisfying the need for convenience. This is why Teriyaki Madness has proven to be a welcomed concept in a market that is over-saturated with unhealthy options that no longer appeal to the consumer’s needs.

Because our food is fresh and made to order, the consumer can not only fulfill their need for a healthier option but they can completely customize it. If the customer wants, they can skip the carbs and go for veggies!

They can also easily alter the items on our menu to appeal to diet-restriction needs. Most items on our menu can be made gluten free upon request and by providing a customizable menu that is made to order, no consumer will leave without a healthy option that is hot and ready to go.

Convenience is everything in this day in age and Teriyaki Madness is rising to the top by providing exceptional service molded around the rising trend of the new health conscious generation.

ASIAN & HEALTHY FOOD TRENDS

WHY asian Food? 9

Page 12: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

12OUR CustomersWHO ARE THEY?

DEMOGRAPHICS• Age: 25– 54• 3+ Persons in Household• Married, with Families• Household Income: $50k - $70k+• Jobs vs. Owner

• Sweet Spot: Older Millenials,with Families and Jobs

PSYCHOGRAPHICS• Active Lifestyle• Health Aware• Fitness Interest• Educated• On The Go• Busy

10

Asian food is fresh and flavorful. Customers are getting tired of the same old American staples of burgers, pizza, and subs. Though Asian food is not new by any means, the Asian food restaurant category is the first choice in the U.S.! Most people who try our food, fall in love with it.

Page 13: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

RAVING FANSTMAD FANS TELL IT BEST

1 1

Reviewers

Our customers crave amazing food in big bowls! They hashtaggalore to show their addiction to the Madness. Customers glowabout us on Yelp, Facebook, Google and more!

Here are some real reviews from real Teriyaki Madness fans raving about our dedication to bringing them our flavors! Big bowls of awesomeness! #weloveourfans

Page 14: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

WHY WE’RE UNIQUE 12

The Yearly Sales (average is $1,171,019)*

The Business Model (simple and scalable)

The food (as hearty and delicious as it is healthy)

The Real Estate (small footprint, think strip malls)

territories are going fast (90 granted in 2019!)

*Refer to 2020 Franchise Disclosure Document (FDD)

Page 15: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

Let’s Talk Money! 13

$322,755Initial Investment Range

BIG BOWLS. BIG PROFITS.

* Refer to our 2020 Franchise Disclosure Document

*- $845,435

AVERAGE UNIT VOLUME

$1.17MILLION

FRANCHISE FEE: $150,000 (5 Shops), $99,000 (3 Shops), $45,000 (One Shop)

TOTAL START-UP COSTS: $322,755–$845,435*

ROYALTY: 6% gross sales

MARKETING FEE: 3% gross sales

WHAT CAN I MAKE?Find out more about your earnings potential in our Franchise Disclosure Document (FDD), which includes the Item 19 that shows Income Statements from Teriyaki Madness franchisees. Item 19 can help you understand potential revenue, labor costs, COGS and profit margins. You'll gain access to the FDD when you enter the Education Process and begin working with Teriyaki Madness's Director of Franchise Growth.

*

Page 16: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

AVAILABLE TERRITORIES 14

The world is a big place with lots of room for you to start your own TMAD and spread the Madness!All territories are available, except for Washington State, Las Vegas, and Hawaii.

Page 17: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

HEAR It FROM SHOP OWNERSFEEDBACK FROM ACTUAL FRANCHISE OWNERS

"With the Asian food trend continuously growing over the past decade, we're thrilled to be giving residents of Madison access to big, satisfying bowls filled with high-quality ingredients and mouthwatering flavors. I'm extremely passionate about this business and our unique concept to serve food unlike anything else out there."

- manoj PatelTeriyaki Shop OwnerMadison, AL

“We chose Teriyaki Madness because it was rated high as one of the fastest growing franchises out there. When I presented it to my wife she said, "you got to do it because we've always been searching for something healthy, fast and reasonably priced.”

- Jon MarshTeriyaki Shop OwnerMarina, CA

“I was looking into healthy alternatives and Teriyaki Madness came up. After eating there a few times, I was totally impressed with everything from food to service. It seemed like an easy concept that anybody without any background could learn very easily.”

- Dean ClarinoTeriyaki Shop OwnerLas Vegas, NV

“I am very particular about my food: ingredients, nutrition, additives, whether it’s frozen or not. When I went to TMAD I was very impressed. My kids and husband love it so much. The quality speaks for itself.”

- Qing LiTeriyaki Shop Owner Denver, CO

15

Page 18: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

A DAY IN THE LIFE 16

We have many different types of franchise owners in our system, including owner-operators, semi-absentee, absentee and multi-unit leaders. Whether you are managing the manager or working in your shop, we encourage you (or your manager) to be actively involved in the operations of the business in the beginning. In the first six months to a year, this person will manage all aspects of their restaurants including:

• Guiding employees/managers to ensure the operations arexdrunning smoothly.

• Food preperation, assisting the cook line, Point of Sale (POS)system operation, training/hiring new employees, touchingtables and talking to guests.

• Monitoring inventory levels and placing orders with suppliers asvvwell as working with an accountant on bookkeeping tasks tovvkeep the financials top of mind.

“Once they try the food, not only are they going

to need it, they’re going to want it.”

Page 19: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

EDUCATION TIMELINE 17

1

2

3

4

5

6

IntroductionGetting to know each other.

Franchise Disclosure Document (FDD)Review and answer questions about information in the FDD.

Goals & VisionWe want to know your objectives, expectations, and goals so we can determine if we can help you achieve them. We want to determine cultural match.

Peer Review & ValidationTalk to franchisees.

DISCOVERY DAYMake plans to attend Discovery Day in Denver, CO. Try the food; tour a shop, meet a franchisee and find out what our team does to support each and every shop owner in our franchise system.

Executive InterviewSit with our Executives for a final interview and approval! We will finalize our decisions on whether we believe you can be successful at TMAD. You make your decision and let’s start building!

TMAD FranchiseeSign the Franchise Agreement, pay the Franchise Fee, and become a franchisee!

“It’s just a great group of

people that work for you,

support you and put your

interests first.”

7

Page 20: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

STEPS TO open A SHOP 18

Real EstateOur Team helps you find the best location by teaming you with proven local brokers who know the area best!

ConstructionWe help you find the right General Contractor for the job to get your TMAD open as quickly and affordably as possible.

FinanceWe have the tools to help you run your company and benchmark with our proprietary finance dashboard.

SUPPLY CHAINWe set you up with our national vending partners like Sysco and Pepsi.

MARKETINGWe coach you on spreading TMAD to your community. From Grand Opening and Local Marketing to Social Media and more!

OPERATIONS (Training & Support)• Initial Training: 4 Days• Hands-On Training (HOT): 10 Days during the construction phase• Grand Opening Training: Occurs approx 8-14 days before and

around opening• Ongoing Support: Business Coaches provide continual supportfofor your open shop!!

Page 21: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

Future Growth 19

TMAD is a young brand that will open nearly 50 additional Teriyaki Shops in 2020! CEO, Michael Haith’s vision is

to have 500 open locations in the next 7 years. The world is a big place with lots of room for you to start

your own TMAD and spread the Madness. We’re open in 20+ states and Mexico (Canada coming soon!).

Page 22: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

MEET THE MANAGEMENT TEAM 20

Erin Hicks

Chief Operating OfficerErin Hicks provides the leadership, management and vision necessary to ensure that Teriyaki Madness has the proper operational controls, administrative and reporting procedures. She also ensures the correct people and systems are in place to effectively grow the organization and to guarantee financial strength and operating efficiency.

Relevant Experience• Executive Vice President at MauiWowi Hawaiian Coffees andSmoothies• Owner of a sports bar & grill

TMAD’s putting the soul in

franchising, read what Michael Haith,

owner and CEO, has to say about the concept here.

Michael Haith

Chief Executive OfficerMichael Haith’s role is to oversee Teriyaki Madness both at a corporate level and franchisee level. With almost 30 years of experience as a franchisee, franchisor, franchise investor and supplier, Michael has a unique perspective on what it takes to achieve success for entire franchise systems.

Relevant Experience• Franchisee of Pour La France!Catering• Managing partner of Maui WowiHawaiian Coffees and Smoothies.• Founded Franchise Sherpas, anincubator and investment firmdevoted to the partnership anddevelopment of emerging franchisors• Chairman-Mentor at Maui WowiHawaiian Coffees & Smoothies,Franchise Sherpas, Doc Popcorn,Kidcreate, and Raintree FranchiseSales Agency• Investor in start up franchises• Owner of Teriyaki Madness

Joe Gordon

Executive Vice President of LogisticsJoe Gordon’s focus is the development and distribution of the highest quality products at the best price. He oversees research and development of new products and contracting with suppliers and distributors.

Relevant Experience• Director of Supply Chain, QualityAssurance & Research &Development at Portillo’s Hot Dogs• National Director of SupplierManagement at United Natural Foods• Vice President of Supply Chain &Quality Assurance at Noodles &Company

Page 23: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

MEET THE MANAGEMENT TEAM 21

Jodi Boyce

Executive Vice President of MarketingJodi Boyce’s role at TMAD includes overseeing the Marketing Team of five and touching anything related to the brand, including defining the brand voice, personality, supporting programs and overall national branding efforts.

Relevant Experience• Vice President of Marketing atSmashburger• Senior Director of Marketing atQuiznos• Hotdogger and driver for OscarMayer Wienermobile

Hank Janik

Vice President of Real EstateHank Janik brings a wealth of experience to contribute to the real estate development for new and multi-unit TMAD owners. Hank’s role is to find ideal locations for TMAD’s franchise owners and to plan market development for the brand.

Relevant Experience• Senior Real Estate Director atSchlotzsky’s• Executive Director at Moe’sSouthwest Grill• Multi-unit franchisee for a drycleaning concept

Joe Cohen

Vice President of FinanceJoe Cohen brings 30 years of finance and operations leadership to TMAD. Joe is a firm believer of "if you can't measure it, you can't manage it" and works with his team to provide TMAD with tools to make great business decisions!

Relevant Experience• Senior Vice President ofSafety-Kleen• National Director of ADT• President of Savory Spice• President of Old School Burgers

Elizabeth Sapp

Vice President of Franchise RelationsAt TMAD, Elizabeth is responsible for developing and strengthening the communication between TMAD corporate and franchisees, as well as the communication within the franchise community and within the corporate community.

Relevant Experience• Communications, Training & GuestRelations at Quiznos• Consulting for Colorado Women’sCollege, Boston Market andChic-fil-A.• Middle school teacher

Page 24: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

REAL ESTATE & CONSTRUCTION 22

When it comes to real estate, Teriyaki Madness is uniquely flexible. From strip malls to power centers, from urban to small towns, and from new build to retro-fit, Teriyaki Madness can be adapted to a wide variety of real estate. When you work with Hank Janik, Vice President of Real Estate, you get the experience and guidance of a local broker, access to industry leading site selection technology and proven real estate metrics to achieve confident results. Location analytics technology aids the Real Estate Team with site selection to help determine if customers are near your location using data from current customers to discover where potential customers are in regards to households in proximity, drive time and more. While our shops range in size from 1,050 to 2,500+ square feet, we consider our “sweet spot” to be between 1,400 to 2,000 square feet. Typical TMAD Shops are near other national fast casual brands, with high traffic or pedestrian counts and surrounded by customers with known interests in fitness, sports, do-it-yourself projects and home décor.

Franchisees can build anywhere that there is not a previously established protected territory for an existing shop. Protected territories are dependent on market area and by the language contained in the Franchise Disclosure Document (FDD).

Real Estate Process:• Site Selection• Market Survey• Site Tours• Letter of Intent (LOI)• Lease Negotiation

Construction Process:• Design• Permitting: Furniture, Fixture,

& Equipment• Construction• Walk Through

Page 25: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

PRODUCT QUALITY & SUPPLY CHAIN 23

TMAD takes great pride in our menu and the products we serve. We always want to ensure that we only serve the best and that begins with high quality ingredients in our food. This is where Joe Gordon, our Executive Vice President of Logistics, steps in to set you up with all of our national vending partners!

Each Teriyaki Shop is assigned a representative that assists in making sure the right products are delivered at the right time for the right price. This enables you to order and receive all of their products with ease. And of course, we are here to help make certain that distribution is streamlined and consistent to have a worry free experience!

Throughout the year we review all vendors, manufacturers, and suppliers to ensure that we are getting the best service, products and ingredients at the best price. We take pride in the relationships we have built and will continue to cultivate to make certain we are the industry leader in quality teriyaki!

Now the good stuff! These are our national vendors:

• Pepsi• Sysco• Sanderson Farms• Tundra Restaurant Supplies• JSL Foods• EcoLab

Page 26: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

VENDOR RELATIONSHIPS 24

Ecolab provides water, hygiene and energy technologies and services to the food, energy, healthcare, industrial and hospitality markets. Their food safety services provide consulting restaurants, hospitals, food retailers and food & beverage manufacturers. It is also a supplier of chemicals used by beef and poultry processors to reduce pathogens like E. coli and salmonella in uncooked meats.

Sysco is the global leader in selling, marketing and distributing food products to restaurants. They operate 196 distribution facilities serving approximately 425,000 customers. We have a national agreement with Sysco. This enables our franchisees anywhere in the country to access our products with ease.

Pepsi is one of the world’s most iconic and recognized brands globally. Today, the Pepsi portfolio includes three products - Pepsi, Diet Pepsi and Pepsi MAX — that each generates more than $1 billion in annual retail sales. By partnering with Pepsi we have enabled our franchisees the opportunity to sell some of the best brands in drinks including Gatorade, Mountain Dew, Brisk, and Aquafina.

Page 27: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

OPERATIONS 25

Our team is there, from signing to opening and beyond! We will be with you the whole way, in fact, we are a little hard to get rid of! From full quarterly business reviews, mystery shops, goal setting, weekly reporting, and annual visits!

We are committed to your success and provide weekly support before and after your Teriyaki Shop opening. That support ranges from helping set-up your business, facilitating conversations with our preferred vendors, leading operational systems, ensuring compliance, health and safety regulations are being met and help guide you through effective Profit & Loss Management.

Operations not only trains and supports YOU but we help you train your ENTIRE STAFF! Our team of trainers are highly committed to your learning and the success of your Teriyaki Shop! They know our restaurants inside and out and will teach you the Teriyaki Madness “Culture of Service.”

Owning your own business is hard work and your investment of time, energy, and money is equally rewarding and exhausting. So that is what makes TMADs extensive operation, support and training so important!

Page 28: Franchise report 2020€¦ · WHY TERIYAKI MADNESS? 5 Entrepreneur Magazine Franchise 500 There’s no stopping the Madness! TMAD has landed a spot on the 41st Annual Entrepreneur

MARKETING 26

• Training and Planning: From strategy to tactics, we coverit all! We start building your local marketing plan from the day yousign your lease and provide local yearly marketing plans to keepthe momentum going!

• New Shop Opening: Our national public relations firm willintroduce your Teriyaki Shop to the community to get peopleexcited for your opening; and our robust, integrated marketingplan will reach potential customers at residences, businessesand everywhere in between!

• Local Shop Marketing: We provide you with a full library ofeffective, turnkey local marketing programs that will increasebrand awareness and community involvement directly in yourmarket.

• National Branding and Awareness Campaigns: Throughlimited time offers (LTOs) and other national programs, we will promote TMAD nationally and locally to create brand buzz and get new customers in the door.

At TMAD we focus on exceptional customer service and in doing so we keep our customers coming back for more. In addition to a great customer experience and the addictive flavors of our food, you will have the support from our determined and experienced Marketing Team.

Jodi Boyce, Executive Vice President of Marketing, and her team are devoted to helping TMAD franchise owners spread the message of the madness and growing the brand nationally and locally.

Our team works directly with agency partners and marketing support vendors to provide you with all the tools and processes to help you reach your sales goals and build vast brand awareness in your community. By providing four strategic levels of marketing programs, each new franchise owner can successfully build a local marketing program. Take a look below and see a sneak peek of what type of support you could have with TMAD!

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WITH OUR APP!

ORDERVISIT TERIYAKIMADNESS.COM/APP

OR SEARCH FOR US IN YOUR APP STORE!

Your phone will actually feed you. That’s right. With the new Teriyaki Madness app, you can have delicious, made-to-order bowls of teriyaki for pickup (or delivery in most markets).

This is just another exciting technology release that has kept TMAD above other concepts!

27Mobile AppORDER FOOD. FIND NEARBY SHOPS.

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Q: How many locations do you have open?

There are 67+ TMADs open. Nearly 50 shops will open in 2020.

Q: Investment ranges from $322,755 - $845,435*. Why?

The spread is mainly based on the square footage of the location and the costs associated with the build-out, equipment, materials, general contractors, etc. Again, why we strive for retrofits. You can also see a detailed breakdown of the initial investment cost in Item 7 of the Franchise Disclosure Document (FDD) which is available after completion of the Confidential Questionnaire.

Q: Any additional revenue streams from the business model?

Yes, owners share the Madness by offering catering in their communities. Events, parties and corporate meetings can all experience TMAD. We have also rolled out third party delivery and a mobile app. A high percentage of sales are done outside of the four walls.

Q: What makes TMAD special?

Teriyaki Madness is a fast casual restaurant concept serving up quality, fresh, healthy and flavorful Asian food in a high-vibe atmosphere. Through years of mastering marinating, grilling, and wok-ing, we were able to make bowls that are as hearty and delicious as they are healthy.

Our food is made when you order. Always fresh, never frozen marinated and grilled meats and customizable bowls meant for delicious and healthier eating.

Q: How many employees do I need to run my store?

• Total Staff: 14 • Per Shift: 2-6 • 5-6 Employee Lunch Rush

Q: How do I get Financing?

We are here to help you find funding to open your own Teriyaki Shop. Once you’ve completed the Confidential Questionnaire, we will introduce you to well-known financing companies that have helped many of our franchisees obtain funding.

FAQ & MAD FACTS 28

*Refer to the 2020 Franchise Disclosure Document (FDD)

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TMAD Provides Franchisees New Revenue StreamTMAD has rolled out a new catering program that offers easy ordering and navigation for customers. The program also offers a lucrative revenue stream for current franchisees! Read on!

Turnin’ Up The Heat in Miami!Being a bustling cultural hub, Miami’s spirit and energy align nicely with that of Teriyaki Madness’. With one Teriyaki Shop already open in the market, two more arriving soon, and another nine in development, TMAD is already turning up the heat in the colorful city. Check it out!

TMAD Awards 90 Franchises in 2019After seeing a 48 percent increase to 65 shops in 2019, Teriyaki Madness is well-positioned to further build on this momentum in the year ahead, especially considering its efforts on the development front. TMAD has awarded 90 new franchise locations in 2019 alone. Read the full story!

Top 5 Benefits of a Teriyaki Madness FranchiseAccording to the Franchise Brokers Association (FBA), Teriyaki Madness is one of the hottest fast-casual restaurant franchises in the United States today. With 67+ of TMAD’s 150+ locations sold to date are open, TMAD is still considered a top emerging brand! Check out the Top 5 Benefits!

IN THE NEWS 29

“The quality speaks

for itself!”

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Development TeamDirector of Franchise Growth: Tyler DeMuthDevelopment Coordinator: Fabian TrejoDirector of Development: Alison SatrianaDevelopment Marketing Manager: Amanda Cooper

[email protected] | 303.997.0727